• Egypt plans $2 billion eurobond issuance in late 2025-26
• Demand strong for five-year bonds, government says
• Eurobond issuance capped at $4 billion in 2026

Egypt plans to issue a $2 billion eurobond in the second half of the 2025-26 fiscal year (July 1-June 30), Finance Minister Ahmed Kouchouk said on Tuesday at a seminar on capital market development.

“We are seeing growing demand for five-year bonds in international debt markets,” Kouchouk said. He added that the government aims to diversify its financing sources, cut borrowing costs, attract new investors, extend debt maturities and better meet its funding needs.

Egypt last issued eurobonds in January 2025, raising $2 billion in a two-tranche deal with five- and eight-year maturities that carried yields of 8.62% and 9.45%, respectively.

In Egypt, budget deficit financing is still dominated by short-term local currency debt, with maturities of less than one year, alongside bilateral and multilateral loans. The government is seeking to lengthen domestic debt maturities and curb reliance on external borrowing from private creditors. Under this strategy, eurobond issuance is expected to be capped at $4 billion in 2026.

IMF Managing Director Kristalina Georgieva warned of rapidly rising global debt during a recent meeting with Central Bank Governor Hassan Abdalla, noting that public debt is nearing 100% of global GDP and that higher debt-servicing costs are squeezing investment in human capital.

The IMF Executive Board is expected to meet before the end of the first quarter of 2026 to consider the fifth and sixth reviews of Egypt’s $8 billion Extended Fund Facility, as well as the first review of a $1.3 billion loan under the Resilience and Sustainability Facility.

In mid-January, the IMF raised its 2026 growth forecast for Egypt to 4.7% from 4.5%, citing a recovery in household consumption as inflation eases and continued improvement in business investment supported by looser monetary policy.

Walid Kéfi